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Analysts forecast the Smart Grid Communications Network market to grow at a CAGR of 17.66 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing construction of large smart grids. The Smart Grid Communications Network market has also been witnessing the increasing communication network services leasing. However, the increased exposure to cyber-attacks could pose a challenge to the growth of this market.

Commenting on the report, an analyst from the networking team said: "One of the major trends is the increasing communication network services leasing. Several power utilities have entered into contracts for leasing the smart grid communications network services to various telecom companies, or to other service providers. This trend strongly prevails in the US, with approximately 20 percent of the power utilities leasing smart grid communications networks to third parties."
According to the report, one of the main growth drivers is the increasing construction of large smart grids. The major difference between smart grids and traditional power grids is the ability of the smart grid to facilitate two-way communications, which are performed through the smart grid communication networks.